Correlation Between Gigastorage Corp and Jean
Can any of the company-specific risk be diversified away by investing in both Gigastorage Corp and Jean at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gigastorage Corp and Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigastorage Corp and Jean Co, you can compare the effects of market volatilities on Gigastorage Corp and Jean and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gigastorage Corp with a short position of Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigastorage Corp and Jean.
Diversification Opportunities for Gigastorage Corp and Jean
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gigastorage and Jean is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Gigastorage Corp and Jean Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jean and Gigastorage Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gigastorage Corp are associated (or correlated) with Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jean has no effect on the direction of Gigastorage Corp i.e., Gigastorage Corp and Jean go up and down completely randomly.
Pair Corralation between Gigastorage Corp and Jean
Assuming the 90 days trading horizon Gigastorage Corp is expected to generate 1.86 times less return on investment than Jean. But when comparing it to its historical volatility, Gigastorage Corp is 1.09 times less risky than Jean. It trades about 0.02 of its potential returns per unit of risk. Jean Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,325 in Jean Co on September 4, 2024 and sell it today you would earn a total of 295.00 from holding Jean Co or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gigastorage Corp vs. Jean Co
Performance |
| Timeline |
| Gigastorage Corp |
| Jean |
Gigastorage Corp and Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigastorage Corp and Jean
The main advantage of trading using opposite Gigastorage Corp and Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigastorage Corp position performs unexpectedly, Jean can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jean will offset losses from the drop in Jean's long position.| Gigastorage Corp vs. Taiwan Semiconductor Manufacturing | Gigastorage Corp vs. Yang Ming Marine | Gigastorage Corp vs. AU Optronics | Gigastorage Corp vs. Nan Ya Plastics |
| Jean vs. Shuttle | Jean vs. Amtran Technology Co | Jean vs. AVerMedia Technologies | Jean vs. Gigastorage Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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